Southwest Credit posts a record milestone.
A surge of $16.6million during 2016-17 saw total deposits in Warrnambool’s local financial institution reach $110.3 million.
CEO David Brown said passing $100 million was a significant milestone for the credit union. “It reflects the support of our member base and our close connection to the local community,” Mr Brown said.
South West Credit’s total assets have increased to $122.6 million, up nearly $17 million on the previous year, and its customer base passed 11,000 people and businesses.
During 2016-17 South West Credit approved $36 million in loan applications, nearly $10 million more than the previous year, and welcomed 991 new savings accounts.
In his annual report presented on November 14, Chairman Gary Parsons said it was pleasing that South West Credit could build its asset base during a challenging year.
Mr Parsons said it was important in challenging times to plan for the future.
The Board and management have developed a strategic plan called Vision 2020 that encompasses sustainability, delivery, engagement, competitiveness and longevity.
“Our Vision 2020 highlights the pillars of our short and long-term business model, ensuring the needs of our members are our number one priority,” Mr Parsons said.
"Through the year, South West Credit invested in new products and technology upgrades to enhance banking services for members.
“We continue to invest in products and services that match the major banks,” Mr Parsons said. “We always reinvest our money into products for members.”
Mr Parsons said continuing consolidation within the credit union Industry and the changing financial sector would again challenge South West Credit. “l am confident we have positioned ourselves positively to deliver our long term strategies,” he said.
“There is a lot to be excited about; new initiatives and opportunities will enhance our member offering and benefit existing and prospective members.”
The 2017 financial year ended with a profit after taxation of $188,409, slightly less than $216,390 the previous year due to the low-interest rate environment and higher loan repayments.
The Capital Adequacy Ratio, the main measure of a Credit Union’s overall financial soundness, was 18.5 percent, well above the minimum required by Australian Prudential Regulation Authority (APRA). South West Credit’s liquidity ratio also remains strong, and above the prescribed regulatory requirements.
South West Credit allocated more than $53,000 in grants and donations during the year, along with in-kind support.
Mr Parsons said South West Credit’s role in the community was a reliable and secure financial services provider, employer and supporter.
“We are proud to be truly local and committed to providing innovative and relevant banking services putting members before profit,” he said.